Apple reported its most robust fiscal third quarter on record on Thursday, topping Wall Street expectations on the strength of iPhone and MacBook sales even as its services segment fell short of targets.
The Cupertino, California-based company earned $29.79 billion, or $2.02 per share, in the April–June period, a 27% jump from $23.43 billion, or $1.57 per share, a year earlier. Revenue climbed 16% to $109.42 billion, exceeding the $109 billion in revenue and $1.89 per share that analysts polled by FactSet had projected.
Tariff refunds of 11 cents per share contributed to the quarter’s earnings, offering a modest lift amid an unsettled trade environment.
“Today, Apple is proud to report our strongest June quarter ever, with double-digit revenue growth across iPhone, Mac and Services, and in every geographic segment,” said Tim Cook, Apple’s chief executive.
Despite the beat, the services division—an increasingly important pillar of Apple’s business that includes the App Store, iCloud and subscription offerings—came in below expectations, a soft spot investors have watched closely as the company leans on recurring revenue to offset hardware cycles.
Apple raised the prices of its Macs and iPads last month, citing a memory-chip shortage triggered by surging demand from the artificial intelligence boom. The company described the spike as an “unprecedented challenge” for the consumer electronics industry. It has not yet increased iPhone prices, though analysts and consumers widely anticipate such a move later this year.
The results arrive against a backdrop of ongoing trade tensions that have shaped Apple’s cost structure. Earlier this year, Cook addressed the effect of tariffs on the company’s operations, underscoring the pressures facing a business with deep manufacturing ties across Asia.
Apple recently reclaimed its title as the world’s most valuable company from chipmaker Nvidia. Shares nonetheless fell $7.52, or 2.3%, to $325.91 in after-hours trading, reflecting investor caution over the services miss and uncertainty about pricing decisions ahead.
The quarter marks a significant milestone as questions swirl over leadership succession and Apple’s long-term AI strategy. The company is expected to detail its product roadmap and pricing plans in the coming months as it navigates chip supply constraints and shifting global demand.